The biggest news happening right now is the president's proposed $700 billion bail-out of Wall Street. I don't like the bail-out and consider it to be a bad idea, but I'm smart enough to know that it's probably going to happen. Furthermore, it may even be true that this horrible idea is necessary to keep the American economy from spiraling downward into a deeper recession (or even a depression).
Right now, it looks like most Democrats and a few Republicans have agreed to approve the bail-out with some changes to protect the American people. These changes were needed, and make the bail-out barely palatable. There is probably enough of Congress on board to approve it, but that should not happen.
Currently, a majority of House Republicans oppose the plan. This opposition is laying a trap for Democrats. A clear majority of Americans either oppose or don't understand the bail-out and why it needs to happen.
The Republicans are the ones who sold out to Wall Street. They are the ones who removed regulations and refused to allow oversight. The Republicans have the primary responsibility for creating the current economic crises, and Democrats should not let them off the hook.
If the Democrats pass this huge bail-out without at least a majority of Republicans supporting it, the Republicans will just go to the electorate and use this as an example of Democrats being "big spenders". That must not happen. The Republicans created the problem and they must participate in the solution -- especially since the solution is so unpopular.
There is only one way for Democrats to avoid this electoral trap. They must stick together and refuse to approve the bail-out until the Republicans are on board. If the Republicans continue their opposition, then the bail-out should not be approved before the election.
Since the Republicans screwed up the economy, they must either join Democrats in fixing it or take the blame for further economic troubles. Anything less lets them off the hook and makes the Democrats look like the bad guys.
With the election only a little over a month away, we cannot let that happen.
(The political cartoon above is by Daryl Cagle at MSNBC.com)
This is a clusterbake from the get-go.
ReplyDeleteIt will only be a temporary fix as it doesn't address the underlying problems of foreclosures or the other nasty economic elephant in the room... credit card default.
People can no longer borrow on home equity to keep themselves afloat in a stalled economy where the value of homes has fallen so sharply as to wipe out equity.
It makes the bankers liquid enough to do it all over AGAIN, should they like and they really LIKE. The derivative market has made them all tons of money.
We are told that the world economy may crash if a deal is not reached by Monday's Asian markets. Bugger that. The world economy is already in trouble from many of the same problems that we have here PLUS they are holding much of our deficit debt.
The quickest fix that would prop up real estate values is to allow bankruptcy judges to adjust home interest rates back down to an affordable level so that people can afford to stay in their homes until the economy works its way out of this stall.
This common sense approach has been tossed aside. It won't allow the Wall Street bankers to bilk the government as handily as the bailout does.
I believe things are going to crash no matter what the government does. The middle class are going to suffer. This bailout will only delay the suffering because eventually the losses have to be absorbed somewhere. Wall Street is asking the middle class to shoulder the entire burden.
The Dems better stick to their guns and demand an equal number of Repugs vote for this train wreck.
On another note:
http://www.webpronews.com/topnews/2008/09/26/oops-wsjcom-ad-calls-mccain-win-before-debate
Rupert Murdoch's Wall Street Journal declared McCain the winner of the debate hours before it was even scheduled to begin. And the WSJ has been all over the economic CNBC shows promoting this bailout that they are now calling a "rescue". How long are Americans going to allow Rupert to shape public opinion with propoganda?
Mick